2023 Budget Predictions
15/03/2023

With the economy as it is and insolvency increases at 18%. Jeremy Hunt will be required to pull the rabbit out of the hat to stop the economy slowing even further. Here's some of our predictions on what may happen with his announcement at 12.30pm today.

Personal Taxes

In Rishi Sunak's "Tax Plan" from the 2022 Spring statement probably have been reviewed by the Treasury for the forthcoming years. If there isn't some tax relief and tax anomalies addressed in the Spring/Summer it's going to be a cold Winter for the UK.

Investor's Relief - The current Investors Relief scheme hasn't had been taken up by many investors and so we may see some additional relief in place to increase up dated.  

Increase in the Higher Income Benefit Charge - The higher Income threshold of £50,000 has not changed since 2013

Changes in Capital Gains Tax Rules for Gifts of Business Assets - The Chartered Institute of Taxation pointed out the inconsistent effect of Capital Gains Tax rules for Gifts of Business Assets to the impact of subsequent rules of Intangible Assets and Goodwill. 

Cap Limit on ISAs - A lifetime cap maybe introduced on ISAs similar to Pension Contributions

Business Taxes

It is unlikely that the Corporation Tax rising to 25% from 1st April will change however there maybe proposals to decrease Corporation Tax over an extended period. The overall goal is to make the UK one of the most competitive countries regarding business taxes. So the current government will be required to put their money where their mouth is. 

Corporation Tax changes - reduction of Corporation between 1-3% on the higher rate over a period of 5 years whilst keeping the micro entity rate the same. The threshold of the small company rate maybe increased from £50,000 to £70,000. 
 
Replacement of the Super Deduction Capital Allowances Rate - The Super Deduction Capital Allowance Rate is currently costing the government £11bn of Tax Revenue. It is most likely to end on the 31st March 2023 as predicted. I would expect that a new system will be introduced whereby the Super Deduction Rate will be reduced from 130% to 110%. 

Energy Support Packages - With the ever rising costs of our personal energy bills, business energy is no different. It is predicted that the UK wholesale market price is reducing and whether this is going to be passed onto Consumer and Business customers we are unsure. The government are implementing a scheme to support businesses with their energy bills. 

New Investment Zones - It is more than likely that new investment zones will be identified and this money maybe available through your local government

Crackdown on Overseas Companies owning Property in the UK - Overseas Companies has up to 31st January 2023 to register with Companies House. The government is predicted to enforce the new legislation for the Overseas Companies to declare the Beneficial Owners. There is an estimated 10,000 properties in the UK that are owned by Overseas Companies.  

Employment Taxes

With around 6.6 million people not in full time work or training of working age, the government are looking at incentives to address this. There maybe a possibility to tempt early retirees back into the work. 

Dispensation of National Insurance Contributions for Returning Workers - It is likely that something will be proposed that will encourage workers to get back into work and this maybe a way of reduced National Insurance Contributions for 12 months. 

Increase in State Retirement Age - There maybe an increase in State Retirement Age to 68

Increase in Age Personal Pensions can be accessed - There maybe an increase in age whereby you can access your pension this age maybe increased from 55 to 57. 

Increase in Working Hours limits for Foreign Students - There is a shortage of skilled labour and the government is hoping to address it by increasing working hours limits for Foreign Students. 

Reform of the Apprenticeship Levy - It's always been a money spinner for the Government. It maybe changed in this Budget.